Higher investments, particularly in machinery and computers

20/11/2014 15:30

The volume of investments in tangible fixed assets was 3.2 percent higher in September 2014 than in September 2013. According to Statistics Netherlands, investments in computers, telecommunication, machinery and installations were the main contributors to September’s growth.

Investments has risen over the period October 2013-May 2014, followed by upswings and downswings in the ensuing months. This is mainly caused by investments in construction projects. Currently, the level of investments is far below the pre-recession level at the end of 2008, as Statistics Netherlands reported last week.

Investment in tangible fixed assets (volume)

More investments to increase production capacity

In September, companies invested more to upscale their production capacity. They bought more machinery and computers. This corresponds to the increased capacity utilisation rates and improved business confidence. Investments in residential and non-residential property were on the same level as in November last year.

Investment climate improves considerably

According to November’s Investment Radar, the investment climate in the Netherlands has improved considerably in November relative to October. Exports grew substantially compared to the preceding month. Manufacturers were much more positive about their order positions and the capacity utilisation rates in the sector manufacturing industry improved.